Summary of "New Consumer Protections Could Save You Hundreds on Your Next Flight" - Smart Travel by NerdWallet

Hosts: Sally French and Megan Coyle
Guest: Teresa Murray, Consumer Watchdog at US Public Interest Research Group Education Fund
Release Date: July 23, 2025

Introduction

In the episode titled "New Consumer Protections Could Save You Hundreds on Your Next Flight," NerdWallet's travel experts, Sally French and Megan Coyle, alongside guest Teresa Murray, explore the escalating number of complaints against U.S. airlines and the newly implemented consumer protections aimed at alleviating these issues. This comprehensive discussion provides travelers with essential insights and actionable advice to navigate air travel more effectively.

Surge in Airline Complaints

Teresa Murray begins by highlighting a concerning trend: complaints against U.S. airlines have reached a new high in 2024, marking the fourth record year out of the last five.

"Complaints against US Airlines hit another record, which it's done four out of the last five years." [08:13]

Among the largest airlines, Frontier Airlines tops the list with the highest number of complaints per 100,000 passengers, surpassing Spirit Airlines, which holds the second spot.

"Of the 10 largest airlines, Frontier had the most complaints per 100,000 passengers, with Spirit following as the second worst." [07:23]

Factors Contributing to Increased Complaints

Several key factors drive the rise in airline complaints:

1. Increased Passenger Volume vs. Complaint Rate: While passenger numbers grew by 4%, complaints surged by 9%, indicating dissatisfaction outpaced growth.

2. Post-Pandemic Expectations: The prolonged impact of COVID-19 has heightened travelers' expectations for seamless experiences, making them less tolerant of disruptions.

   "We believe passengers have found their voice and now realize that complaining gets results." [09:00]

3. Rising Fees: Escalating baggage and ticket fees have led passengers to expect more value, resulting in frustration when services fall short.

   "Airline tickets have gone up in price, and baggage fees have increased, leading to higher customer expectations." [09:17]

4. Discontinued Flights: Airlines removing flights well in advance complicates travelers' plans, with such changes not yet tracked by the Department of Transportation (DOT).

   "Discontinued flights taken off more than a week before departure aren't counted as canceled, adding to passenger inconvenience." [09:34]

Introduction of New Consumer Protections

Teresa Murray introduces the "Plain Truth 2025" report, outlining substantial consumer protections enacted by Congress and the DOT:

1. No-Hassle Refunds: Airlines must offer refunds for canceled or significantly delayed flights without pressuring passengers into accepting vouchers.

   "Airlines must now offer a refund before even offering a voucher." [13:00]

2. Defined Significant Delay: A delay is legally significant if it exceeds three hours, providing clarity to passengers about their rights.

   "A significant delay is now legally defined as three hours or more." [13:22]

3. 24/7 Customer Service: Airlines are required to maintain round-the-clock live agents to assist passengers during disruptions.

   "Airlines must have 24/7 live agents for disrupted flights." [13:00]

4. Enhanced Support for Passengers with Disabilities: New protections ensure better assistance for those using wheelchairs or scooters.

   "There are vast new protections for travelers who use wheelchairs or scooters." [13:00]

5. Baggage Fee Refunds: If checked bags arrive 12 hours or more after the passenger, airlines must refund the baggage fees.

   "Airlines must refund your baggage fees if your bags are delayed by 12 hours or more." [14:56]

These measures aim to empower consumers, ensuring fair treatment and adequate compensation during travel disruptions.

Booking Strategies: Direct vs. Third-Party

The hosts emphasize the importance of booking flights directly with airlines rather than through third-party agents to avoid complications.

"Avoiding third-party ticket agents can prevent situations where your booking is mishandled, leading to costly rebookings." [21:31]

Teresa Murray shares a cautionary tale about a couple who faced significant financial loss and inconvenience due to a third-party agent mishandling their Delta flight booking.

"Their tickets were canceled without their knowledge, and they had to rebook at over three times the original cost." [21:30]

This story underscores the risks associated with unreliable third-party booking platforms.

Travel Tips and Consumer Advice

Teresa Murray and Sally French offer valuable advice for both novice and experienced travelers:

1. Know Your Rights: Familiarize yourself with the new consumer protections to ensure you're adequately compensated during disruptions.

   "Travelers should know their rights to ensure they're adequately compensated during flight disruptions." [23:22]

2. Use Baggage Trackers: Implement trackers for all bags, including carry-ons, as airlines are gate-checking more items to streamline boarding.

   "We recommend that people put trackers in all their bags because airlines are gate-checking more carry-ons." [22:54]

3. Be Courteous: Maintaining a polite demeanor with airline staff can facilitate better assistance during issues.

   "Be nice to customer service because they might be able to help fix your problem." [24:29]

4. Overbooking Strategies: If offered compensation for volunteering to give up your seat, consider the bid amounts wisely to maximize returns.

   "If you bid higher, you're more likely to get the compensation, but decide what's important to you." [25:31]

5. Utilize DOT Resources: Use resources like flightrights.gov to stay informed about airline commitments and your rights.

   "Before booking, go to flightrights.gov to see what airlines promise in case of delays or cancellations." [17:35]

Listener Question: Disney Dining Plan

A listener named Melissa inquires about the value of the Disney Dining Plan for her family's upcoming trip. The hosts break down the options and provide strategic advice:

1. Dining Plan Tiers:

   • Quick Service Plan (~$60/day): Includes two counter service meals, one snack, and a refillable resort mug.
   • Standard Dining Plan (~$100/day): Offers one table service meal, one quick service meal, one snack, and a refillable mug.

   "The dining plan can simplify budgeting and reduce stress by prepaid meal packages." [30:15]

2. Value Proposition: While not always saving money directly, the plan offers convenience and a perceived value by reducing the need to constantly pay out-of-pocket.

   "It's more of a prepaid budgeting tool rather than a direct money saver." [31:26]

3. Maximizing Benefits:

   • Use snack credits for substantial meals rather than bottled water.
   • Take advantage of deals where kids eat free when the dining plan is purchased for adults.

   "Use snack credits at places like Gaston's Tavern for more substantial snacks instead of wasting them on bottled water." [32:03]

4. Special Promotions for 2026: For bookings in 2026, families can purchase the dining plan for adults, and children under 10 eat for free, with no cap per room when combined with other hotel discounts.

   "If you purchase a stay at a Disney World Hotel in 2026 and buy the dining plan for all adults, kids in the group eat free." [33:10]

Future Developments in Consumer Protections

Teresa Murray outlines upcoming regulations and areas to watch:

1. Evacuation Standards: Airlines must ensure airplanes can be evacuated within 90 seconds, accounting for passengers of all ages and abilities.

   "DOT has demanded that airplane evacuation studies include a diverse range of passengers, including the elderly and those with disabilities." [27:47]

2. Seat Size Transparency: Future rules may require airlines to disclose seat dimensions, helping passengers make informed seating choices.

   "Airlines will soon be required to disclose seat sizes, allowing passengers to choose flights that offer more comfort." [28:48]

3. Expanded Definitions of Controllable Delays: Clarifications on what constitutes a controllable delay to ensure airlines cannot easily dismiss their responsibilities.

   "DOT is looking into a clearer definition of controllable delays to hold airlines accountable." [27:42]

These developments aim to further protect passengers and enhance the overall travel experience.

Conclusion

The episode underscores the importance of being informed and proactive in managing air travel experiences. With the introduction of new consumer protections, travelers are better equipped to handle disruptions and seek fair compensation. The hosts encourage listeners to familiarize themselves with their rights, choose booking methods wisely, and utilize available resources to ensure smoother and more enjoyable travels.

"We hope you're inspired to keep your passport full and your wallet even fuller." [34:32]

Additional Notes

• Upcoming Content: The hosts tease future episodes, including a dedicated discussion on lost luggage based on Megan Coyle's personal experiences.

  "We will do a whole show on your baggage journey." [29:35]

• Engagement: Listeners are encouraged to share their travel stories, ask questions, and provide feedback through various channels.

  "Tell us your worst air travel stories, send us your questions, just email us at travelnerdwallet.com." [33:42]

For more detailed information on the new consumer protections and to explore your rights as a traveler, visit pirg.org/flighttips.